Kazakhstan Reshapes Education System to Meet Industrial and Labor Market Needs

Kazakhstan has begun a large-scale restructuring of its education system in 2025-2026 as authorities attempt to address labor shortages, overloaded school infrastructure, and the growing mismatch between graduates’ qualifications and the needs of the economy. While previous reforms focused primarily on expanding access to education, the government is now shifting toward tighter administrative management of student enrollment, stronger support for technical and vocational training, and the integration of digital technologies into schools. As previously reported by The Times of Central Asia, the reforms are unfolding amid growing pressure on Kazakhstan’s labor market. One of the most pressing issues remains the condition of the country’s school infrastructure. Rapid urbanization and internal migration have created chronic shortages of school places in major cities and southern regions. To address the problem, authorities launched the “Comfortable School” national project, which envisioned the construction of 369 schools with capacity for 740,000 students during 2023-2024. However, implementation has faced delays caused by contractor failures and rising construction material costs. According to project operator Samruk-Kazyna Construction, by the end of 2025 authorities had commissioned 208 schools, creating more than 217,000 new student places. Most of the facilities were built in Astana, Almaty, and Turkistan Region. President Kassym-Jomart Tokayev previously warned that even accelerated school construction would only temporarily alleviate the problem, since at current population growth rates the shortage of school places could reach 400,000 in the medium term. Against this backdrop, authorities are increasingly turning to technological solutions. In May 2026, Tokayev signed a decree introducing artificial intelligence into the secondary education system. Under the initiative, AI technologies are expected to serve as auxiliary tools for personalized learning, identifying gaps in student knowledge, and reducing teachers’ workloads. By August 1, schools participating in the pilot program are expected to be equipped with high-speed internet access, while by September 1 authorities plan to approve national standards governing the use of AI in education. At the same time, Kazakhstan is strengthening support for technical and vocational education. For the 2025-2026 academic year, around 70% of state-funded grants in the technical and vocational education system were allocated to engineering and technical specialties, including metallurgy, mechanical engineering, energy, construction, and information technology. Authorities are also attempting to expand elements of dual education programs involving private businesses. According to official data, more than 4,000 enterprises have established partnerships with colleges. However, full-scale implementation remains largely confined to major industrial regions, while small and medium-sized businesses in other areas remain reluctant to participate in organizing practical training for students. Significant changes are also affecting higher education. Minister of Science and Higher Education Sayasat Nurbek announced a redistribution of state grants toward professions facing the most acute labor shortages, including thermal power engineering, industrial engineering, water management, and materials science. University financing will now depend directly on institutions’ positions in national rankings and on graduate employment rates. For weaker regional universities, this could effectively mean automatic reductions in state funding. Leading universities have also been granted the right to independently raise admission thresholds...

World Bank Approves $250 Million Loan to Expand Student Financing in Uzbekistan

The World Bank has approved a $250 million loan to support Uzbekistan’s ambitious reform of its student financing system, the institution announced on December 11. The funding will back the Edulmkon Program, a three-year initiative aimed at expanding equitable access to higher and vocational education across the country. Scheduled for implementation between 2026 and 2028, the program is expected to benefit approximately 600,000 young people. Roughly 80% of the loan will be allocated to tuition loans for students from low-income families and for women, groups that continue to face significant barriers to accessing higher education. Uzbekistan, home to around 10 million people aged 14 to 30, has made educational reform a national priority in recent years. This push has led to a surge in the number of universities and vocational institutions, as well as a dramatic rise in enrollment. Between 2017 and 2024, youth participation in higher education increased from 8% to 48%. However, the rapid expansion has exposed weaknesses in the country’s student loan system, which is based on state subsidized loans issued through commercial banks. The World Bank has noted that the current model is not well aligned with labor market needs, as loans are not directed toward high demand fields such as science, technology, engineering, and mathematics (STEM), as well as information and communication technology (ICT). This misalignment has contributed to graduate underemployment, while gender disparities persist. Although women represent more than half of all university students and are the primary recipients of tuition loans, only one-third of female students are enrolled in STEM disciplines. The Edulmkon Program, to be led by the Ministry of Economy and Finance, will address these challenges through a series of reforms. These include modernizing tuition loan management, improving inter-agency coordination, and launching a centralized digital platform to streamline loan processing and improve transparency. The program will also revise eligibility and subsidy criteria to better serve vulnerable students. A cornerstone of the reform is the introduction of an income-contingent loan system, where repayments are based on a graduate’s income. This approach is designed to protect low-income borrowers and those facing temporary unemployment after graduation. By the end of 2028, students are expected to access loans through 12 participating commercial banks operating in coordination with the Ministry. The World Bank also noted that the program aims to attract approximately $30 million in private capital, reducing fiscal pressure on the state while expanding access to education financing.